The Wall Street Journal says that the college graduation class of 2014 is the most indebted class ever in the history of our great nation.
Many for-profit colleges across our country have enslaved many of their customers with student loan debt.
Recently, the Department of Education has announced some relief to students who were victimized by Corinthian College.
The Department of Education is establishing plans to ensure debt relief for:
- Students whose schools have closed down and
- Students who believe they were victims of fraud, whether their school closed or not.
If you are interested in learning more about this process, click here.
The Department of Educations says that if you are a Corinthian Student who has questions about debt relief, you can call 855-279-6207.
In addition to relief for Corinthian College Students, the Administration is proposing tough regulations on for-profit colleges to ensure that students at career colleges don’t end up with debt they cannot repay. You can learn more about these proposed regulations here.
Some members of Congress are attempting to block these new regulations. Education Secretary Arne Duncan says that it is “mind-boggling” that some members of Congress are “fighting tooth and nail to protect schools that take advantage of students and leave taxpayers with the bill.”
Personally, I think both sides are wrong on this issue. I agree with the motive of creating regulations to protect future students. However, burdensome regulations are expensive to comply with. As a consequence, a small mountain of regulations could put some good schools out of business and deprive students of educational opportunities.
I have the perfect solution.
Let the free market decide which schools are good and which schools are bad. The safety value against abuse of the system should be bankruptcy. Make students loans dischargeable in bankruptcy and the bad schools will go out of business without pulling down the good schools.
Allowing student loans to be dischargeable in bankruptcy would bring balance to the system. If the college degree is truly worth the tuition, then graduating students would not qualify for bankruptcy because they would be earning too much to qualify.
Who wants to win a seat in Congress?
I am absolutely baffled that neither the Democrats nor the Republicans have grasped onto the fact that the vast majority of Americans want student loans dischargeable in bankruptcy.
I cannot wait until someone wins a seat based on this issue.
It is time to set the captives free!
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